The users of cross-chain value transfer protocol RenVM recently realized that the platform is not much decentralized.
On August 26, the Wanchain editor Ni Li shared a post claiming that there is a lot of difference in the documents presented by RenVM and its operation. Soon after the users and security analysts noticed this on Medium Post, they started questioning RenVM about it.
RenVM Controls All Nodes
While replying to the users’ questions, cross-chain value transfer protocol stated that many of the decentralized virtual machines have lent their support to the RenVM Protocol. It further clarified that the protocol holds over 9,000 Bitcoin as funds from its investors in a single wallet which is being managed by the RenVM team.
RenVM has also notified that currently, all the nodes of its network are being managed by the company only because it is still in a process of moving away from the centralized network.
It is to be noted that as all the nodes are being controlled by the company, therefore, it has become easy for the hackers to breach into anyone’s system.
RenVM’s Documents Is Different From Its Protocol
According to the post shared by the Wanchain editor, RenVM in its documents has claimed that it would regularly change the cross-chain asset accounts in order to improve its security, however, nothing like this ever happened. In fact, currently, all of the investors’ funds are being managed by the RenVM team.
On August 28, while giving its response to the questions raised by the users, the team of RenVM in its Medium post stated that till the time, it moves towards the decentralized structure, the company would be operating in a good faith.
On the same day, the CTO at Republic Protocol, Loong Wang, reiterate on RenVM’s post and stated,
“The Ren team does, in fact, run all of the nodes in the protocol’s “Greycore,” a network built to distribute digital assets holdings to reduce the risk of theft or exploitation.”